Bitcoin Booms Over Gold: The Institutional Shift Examined
Financial Markets Shift Preference to Bitcoin over Gold, with IBIT Gaining Upper Hand Against GLD in Year-to-Date Fund Flows
In a groundbreaking development, BlackRock's spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has eclipsed the SPDR Gold Trust (GLD) in year-to-date (YTD) inflows, marking a game-changing moment in institutional portfolio trends.
This remarkable milestone unfolded even as gold experienced record highs, boasting a YTD return of 23.07%.
A New Era for Safe Havens
The first few months of 2025 bore witness to a tempestuous global political climate, coupled with a faltering USD, triggered by President Donald Trump's fresh trade policies. Traditionally, such circumstances have buttressed gold, often regarded as a safe-haven by skittish investors.
However, this year, Bitcoin seems to have bucked the convention, as BlackRock's Bitcoin ETF recorded an impressive $6.96 billion in inflows versus GLD's $6.51 billion, according to Bloomberg analyst Eric Balchunas' data. The Bitcoin-based fund now occupies the sixth position among all U.S. ETFs in YTD flows, sustaining this feat despite posting a humble 4.03% return—a fraction of gold's recent meteoric rise, which escalated its price to an unprecedented $3,435 per ounce.
Some market analysts consider this flow disparity as a reflection of the burgeoning conviction among institutional investors that Bitcoin has transitioned from a speculative asset to a long-term portfolio cornerstone.
"Wall Street can't get enough of Bitcoin," asserted Zaheer from Split Capital, publicizing the exuberance among fund managers for the crypto.
The Institutional Bitcoin Boom
The swell in institutional interest in Bitcoin coincided with regulatory advancements, particularly the revocation of the controversial SAB 121 directive by the U.S. Securities and Exchange Commission (SEC). The SAB 121 edict had presented substantial hurdles for banks offering crypto custody services, enabling mainstream giants to encroach upon the Bitcoin space after its repeal.
By the end of last month, IBIT registered its second-largest single-day influx ever, rallying $970.9 million on April 28 alone. This helped escalate its total Bitcoin holdings past the symbolic 600,000 BTC threshold, making it three times richer in Bitcoin than its principal competitor, Fidelity's FBTC.
Concurrently, Bitcoin embarked on a small price surge of nearly 3% within the past 24 hours. It was trading at $97,026 at the time of writing, oscillating between a high of $97,511 and a low of $93,592.
Weekly charts revealed a 2.2% uptick, with Bitcoin outperforming the broader market, which rallied 1.9% in the same period. Longer-term watching, however, shows Bitcoin in a more favorable light. Its price surged 29% within the last 30 days and has grown a robust 52% year-over-year.
Looking to dive into the crypto scene? Here's a limited-time opportunity for our readers at Binance: Use this link to register a new account and receive a $600 exclusive welcome offer.full details Interested in joining the crypto rush with Bybit? Use this link to register and open a $500 FREE position on any coin!**
Sources:
- CoinDesk
- Bloomberg
- The Block
Enrichment Data:
- Institutional Adoption: Institutional investors have increasingly acknowledged Bitcoin's legitimacy as an asset class, driving demand for Bitcoin ETFs like IBIT. The ease of access provided by regulated Bitcoin ETFs has played an essential role in this trend.
- Performance and Inflows: IBIT's record inflows and recent accumulation of Bitcoin have fueled its dominance amid increased market sentiment and confidence in Bitcoin's future potential and strong on-chain metrics.
- Market Sentiment and Confidence: The bullish sentiment among investors about Bitcoin's future is contributing to growing demand for Bitcoin ETFs, with IBIT at the forefront.
- Competition Among Institutions: Competitiveness among major players in securing a substantial Bitcoin stake is intensifying, further boosting the demand for Bitcoin ETFs.
- The iShares Bitcoin Trust (IBIT) has surpassed the SPDR Gold Trust (GLD) in year-to-date (YTD) inflows, marking a significant shift in institutional portfolio trends, a testament to Bitcoin's growing acceptance.
- Despite gold experiencing record highs, Bitcoin seems to have overcome the conventional safe-haven status, as evidenced by BlackRock's Bitcoin ETF recording more inflows than GLD this year.
- The burgeoning conviction among institutional investors indicates that Bitcoin has transitioned from a speculative asset to a long-term portfolio cornerstone, as suggested by the flow disparity observed between Bitcoin and gold ETFs.
- The swell in institutional interest in Bitcoin coincided with regulatory advancements, particularly the revocation of the controversial SAB 121 directive, which paved the way for mainstream giants to encroach upon the Bitcoin space.
- By the end of last month, IBIT registered its second-largest single-day influx ever, rallying $970.9 million on April 28 alone, making it three times richer in Bitcoin than its principal competitor, Fidelity's FBTC.
- Weekly charts reveal a 2.2% uptick in Bitcoin's price, outperforming the broader market, indicating a promising outlook for the crypto in the near future.
